Justin Sun-Linked Wallet Receives 7.2 Trillion PEPE From Poloniex as Whale Speculation Builds

A wallet reportedly linked to Justin Sun — the founder of the Tron blockchain and a figure whose large on-chain transactions tend to draw market attention — has received 7.2 trillion PEPE tokens, valued at roughly $28.44 million, from the long-running exchange Poloniex, a transfer that has reignited interest in whale accumulation around the memecoin. PEPE, the Ethereum-based token inspired by the Pepe the Frog character, remains one of the most widely traded memecoins in the market.

A crypto commentator on X highlighted the transaction, revealing that the wallet's total holdings had reached 7.268 trillion PEPE, worth approximately $32.63 million at the prevailing market price. The sheer scale of the movement fueled speculation about Justin Sun's potential involvement in PEPE ahead of another memecoin cycle.

It is worth noting that the transaction did not confirm fresh purchases. Transfers out of exchange wallets are often read as a shift toward holding or self-custody, though they can also occur for operational reasons, which is why on-chain observers typically look for follow-up movement before drawing conclusions. Even so, the transfer's size refocused market attention on PEPE's whale activity, and the development coincided with renewed exchange withdrawals, adding another dimension to the token's recent market behavior. Whether the tokens stay in the wallet or move again is likely to remain a focal point for on-chain trackers in the sessions ahead.

Spot Outflows Return After Four Days

Alongside the whale transfer, PEPE's spot market recorded a notable shift in exchange flows. After four consecutive days of positive spot netflows, the market flipped negative, registering approximately $2.17 million in net outflows at reporting time.

Spot netflow data tracks the difference between tokens entering and leaving exchange wallets, offering a gauge of potential selling or holding pressure. The reversal suggested that withdrawals exceeded deposits, which in turn reduced the amount of PEPE available on exchanges. The earlier stretch of positive netflows had reflected heavier deposits, potentially increasing the supply available for selling. The recent swing therefore lent weight to the accumulation narrative surrounding the reported whale movement, and how long the outflow trend persists is likely to shape how that narrative develops.

Still, exchange withdrawals alone do not establish stronger buying demand or guarantee an immediate price rebound.

Derivatives Traders Favor Longs Despite Slowing Activity

Derivatives activity around PEPE weakened even as traders maintained a slight bias toward bullish positions. According to CoinGlass analytics, the memecoin's daily trading volume declined 28.56% to $396.07 million, while open interest — the total value of outstanding derivative contracts — rose 1.21% to $316.97 million at the time of reporting. That divergence indicated that outstanding positions expanded slightly despite shrinking derivatives trading activity.

The 24-hour long/short ratio, which measures the balance between accounts positioned for gains and those positioned for losses, sat at 1.067, highlighting a modest advantage for long positions. On OKX, the same ratio stood near 2.13, suggesting a stronger preference for longs among that exchange's account holders.

Liquidation data offered further insight into market positioning: liquidations occur when leveraged positions are forcibly closed after losses deplete the margin backing them, and short liquidations reached $464.35K, compared with $336.80K in long liquidations — a pattern reflecting greater losses among bearish leveraged positions.

Can PEPE Break Through $0.0000050 Resistance?

On the weekly timeframe, PEPE's chart structure pointed to an emerging recovery attempt, with buyers defending lower price levels and reclaiming the $0.0000040 threshold. The memecoin traded around $0.00000450, gaining approximately 15% during the ongoing weekly candle. Its next primary obstacle stood at $0.0000050, a resistance level that had previously rejected upward price appreciation.

Momentum readings favored the bulls. The Directional Movement Index showed the +DI signal at 28.05 against the -DI signal at 14.08, while the ADX reading of 22.55 implied an emerging directional trend, albeit one of moderate strength. The Parabolic SAR, meanwhile, sat below the prevailing market price at $0.00000289.

Taken together, these signals favored the ongoing price recovery, even as PEPE continued to face overhead resistance. A strong weekly close above the $0.0000050 level could validate the bullish outlook and encourage further gains. Given how quickly memecoin sentiment can shift, that weekly close stands as the immediate reference point for whether the recovery attempt extends.